Mukilteo Company signed a note for $$80,000$ to purchase a new piece of equipment. Mukilteo will pay back the $$80,000$ at the end of two years along with any accrued interest. The annual interest rate on the loan is $5$ percent. HINT: This is ane example of the "new" type of note payable$--$one where the interest is "built in$"$ to the total that will be paid back.

Required:

Note: Use appropriate factor$($s$)$ from the tables provided.

Compute the present value of this long$-$term liability. $($FV of $$1,$ PV of $$1,$FVA of $$1,$ and PVA of $$1)$

Prepare the journal entry Mukilteo will record on the day it purchases the piece of equipment and signs the note.

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Compute the present value of this long$-$term liability.

Present value